In late 2020, New Zealand’s Inland Revenue updated their guidance on the treatment of ‘cryptoassets’ for tax purposes. Accordingly, digital assets are considered a form of property rather than a form of currency. Since the country lacks a capital gains regime, this means that you’ll only be taxed if you’re buying Bitcoin with a view to selling it — if you’re looking to HODL indefinitely, then
you’re off the hook.
Interestingly, businesses which don’t fit the traditional definition of a crypto-asset business, but do
find themselves dealing in bitcoin, might also find themselves liable for additional income tax, in the
same way that they might if the cryptocurrency were any other form of asset.